VBS Mutual Bank: investigation recommends more than 50 arrests, concludes bank can’t be saved

In a report titled, The Great Bank Heist, Advocate Terry Motau detailed the gravity of the corruption, theft and bribery that took hold at VBS Mutual Bank.

In the report, Motau has recommended that more than 50 individuals implicated in the shady dealings that drove the bank to the ground be criminally charged for fraudulent activities.

VBS Mutual Bank revealed as the looting pot for executives and political affiliates

The South African Reserve Bank (SARB), in a statement after the release of the report, stated that

“the evidence presented in the report is not a reflection of either the guilt or innocence of any party, as not all parties have been given an opportunity to respond to the evidence.

“The report may assist the law enforcement authorities in its investigation into the affairs of VBS. Once their investigations have been concluded, the authorities may decide to institute criminal prosecutions; the courts will be the final adjudicator in this regard.”

Read – SARB: VBS audited financial statements were not reliable

Motau revealed in the report that while the bank was in curatorship, between 2015 and early 2018, the chair of the bank, Tshifhilwa Matodzi, and co-director, Robert Madzonga, looted something close to R2-billion.

Furthermore, News24 reported that

Motau’s report supports early findings by curator Anoosh Rooplal, who dragged Matodzi and Madzonga before the South Gauteng High Court in Johannesburg to be provisionally sequestrated earlier this year, along with three other executives.

Motau undertook a five-month investigation which included the review of documents seized from VBS and Vele Investments, VBS’ largest shareholder, and conducted extensive interviews with the role players.

Read – Auditor-General: SARS R4.3m in performance bonuses paid without ministerial approval

Motau: Close the doors of VBS, the bank can’t be saved

Moreover, despite attempts to restore the functionality of the bank, Motau concluded that there was no way VBS could be saved at this point.

“It is corrupt and rotten to the core. Indeed, there is hardly a person in its employ in any position of authority who is not, in some way or the other, complicit.” he stated.

He also uncovered the methods in which VBS executives would use to “loot and pillage the monies placed on deposit at VBS”.

“Substantial bribes were paid to certain of VBS’ directors and other related parties in order to buy their silence and to look the other way while the looting was going on,” Motau’s report reads.

Read – Auditor-General: SASSA racks up R1.7bn irregular expenditure

Motau recommends swift criminal action

Motau also suggested that the deposits from municipalities were a deliberate cover-up headed by VBS execs. These were allegedly bribes to public officials who were “in a position to influence the making of such deposits”.

The advocate also revealed how VBS’ top brass would manipulate the banking system to create fictitious deposits for Vele Investments, the majority shareholder.

Read – South African news today: Your headlines in five minutes for Wednesday 10 October

Hundreds of millions of rands were syphoned and spent on personal leisure.

“The captors and their associates went on a massive spending spree at the expense of VBS’ depositors.” Motau added.

Motau concluded the report by asking that it be handed over to the law enforcement authorities and allowing the process of laying criminal charges against all of those implicated in the alleged corruption and looting of the bank.